This post on beach investment properties was written by Marilyn, our resource for all things shore this summer.
If you look at an aerial shot of Stone Harbor and Avalon, NJ, you’ll see the ocean to the east and the bay to the west. In between the two bodies of water is a dream wrapped in a wish. Also known as a beach house, vacation getaway or second home, it’s the place you’ll long to be when you’re anywhere else. How do you make the dream of a vacation home a reality? It’s all about the numbers.
I purchased an investment property in 2014. At the time, it was the lowest priced single-family home available in Avalon. It needed a major renovation so I took out a mortgage and got to work. My goal for this property was to cover my costs with rentals, but if I wasn’t able to do so, the long term appreciation would surely justify the purchase. The one guarantee for a rental at the shore is if the house is updated and shows well, the rental rates are higher.
Jeremy Jones, a Realtor with Long and Foster in Avalon, has a condo for sale on the very desirable 96th St. in Stone Harbor. MLS # 167368. The asking price for this property is $519,000. The estimated rental income for this 3 bedroom 2 bathroom condo one block from the beach would be $25,000 for the summer. You can earn additional income by renting off-season to weekend warriors who love the beach in the spring and fall. This is a perfect opportunity to get your foot in the door at the beach. The appreciation for condos isn’t as great as a single-family, but the carrying costs can be much lower.
Making the numbers work is no sure thing. You need patience and the understanding that there may be times when some weeks sit empty. The other factor to consider is the overall attraction of the town. Will vacationers remain loyal to Avalon and Stone Harbor or will another beach town compete for tourist dollars?
Ultimately, if your focus is a beach retreat, you can take solace in the fact there is a limited amount of coastline and the allure of the beach is powerful. As a Realtor servicing the islands of Avalon, Stone Harbor and Sea Isle, I have the information and experience to assist you all along the way. I fully understand this market and everything involved with investment properties and I have the know-how to guide you successfully through this process.